Senate Fiscal Agency

LANSING, Mich. (AP) - Michigan could take in $542 million more in revenue than projected 4 months ago.

That's according to a report Monday from the nonpartisan Senate Fiscal Agency. It's good news for lawmakers and Gov. Rick Snyder as they work to finalize a state budget for the fiscal year starting in October.

Senate experts say Michigan could have a $739 million surplus in the current budget year. The extra money could be used to boost spending, lower taxes or be socked away in savings.

The Snyder administration and economists are meeting Wednesday to agree on budget figures. The House Fiscal Agency and state treasurer also will put out revenue projections for the meeting.

Legislators aim to pass the next budget by June, though sticking points remain over Medicaid expansion and road funding.

Over the next two years, the state of Michigan should recover about 40 percent of jobs lost during a nearly decade-long recession, says one University of Michigan economics professor.

George Fulton, director of the Research Seminar in Quantitative Economics, told a group of state officials that Michigan is expected to enter its fourth year of a moderate but sustained economic recovery.

Speaking at the state’s biannual revenue-estimating conference Friday, Fulton said Michigan still has progress to make.

The state is bringing in more money than expected. That’s according to a report by the non-partisan Senate Fiscal Agency.

The agency says Michigan ended the fiscal year that ended September 30th with a $1.3 billion surplus. An improving economy and lower income tax refunds are largely credited for the surplus. But much of the windfall has already been dedicated to programs in the current fiscal year.

David Zin is an economist with the Senate Fiscal Agency. He says the auto industry still has a major impact on the state’s economy.

“People cut back so much on vehicle purchases in the 2008-9 recession, that while sales are low by historical standards, they’re up quite significantly from just a year or two ago,” Zin said.

Zin says the state collected more tax revenue in 20-11 than projected last year. He says the economy is not expected to grow quickly over the next couple years.